Sara May, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor outfitters in lots of one dozen. Sara May's May static budget and actual results for direct inputs are as follows: E (Click the icon to view the static budgets and actual results.) (Click the icon to view additional information.) Required Requirement 1. Calculate the direct materials and direct manufacturing labour price and efficiency variances in May. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labour) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labour in the flexible budget? Begin by calculating the direct materials and direct manufacturing labour price and efficiency variances in May. Complete the actual results, price variance, and cost columns, and then the efficiency variance and flexible budget columns. Label each variance as favourable or unfavourable. (Round all answers to the nearest cent.) Actual Price Actual Input Qty * Efficiency Flexible May Results Variance Budgeted Price Variance Budget Units Direct materials Direct labour Total variance 600 Static Budget Number of jacket lots (1 lot = 1 dozen) Per Lot of Jackets: Direct materials Direct manufacturing labour Actual Results Number of jacket lots sold Total Direct Inputs: 10 metres at $1.60 per metre = $16.00 2.3 hours at $8.10 per hour = $18.63 = 625 Direct materials = 7,500 metres at $1.80 per metre = $13,500.00 1,313 hours at $8.20 per hour = $10,766.60 Direct manufacturing labour Sara May has a policy of analyzing all input variances when they add up to more than 8% of the total cost of materials and labour in the flexible budget, and this is true in May. The production manager discusses the sources of the variances: "A new type of material was purchased in May. This led to faster cutting and sewing, but the workers used more material than usual as they learned to work with it. For now, the standards are fine